SINGAPORE: Signals are mixed for Brent oil and will be clearer only when the contract leaves a neutral range of $107.06-$108.71 per barrel.
The range has been formed by the 23.6 percent and the 38.2 percent Fibonacci retracements on the fall from the June 19 high of $115.71 to the July 15 low of $104.39.
The rebound from this low could be too brief to complete, in view of the length of the preceding uptrend.
However, the pattern within the range could develop into a bearish double-top as well.
A fall below $106.70 will confirm the double-top, and a bearish target at $105.20 will be established. Only a break above $108.71 could signal the extension of the rebound.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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